Meet Angela
Challenge:
Get her out of the red
- Married with young family
- Medical Specialist
- Earns $500,000 pa in hospital system
- Limited savings plan owns home and has super in Self Managed Super Fund
Angela came to us after a bad experience with her previous accountant. She moved from earning $500k annually in the public hospital system to setting up her own private practice and earning $500k in her first year.
The implications of this career move were unknown to Angela and, unfortunately, her previous accountant.
Angela was unaware of her tax obligations and was stunned that not only was she facing a tax bill of $200k, but that she would also be required to pay another $200k in provisional tax. A total tax bill of $400,000!
To make matters even worse, as Angela budgeted only for her expected tax bill, she continued her previous spending habits and consumed all her earnings.
Angela was obviously not happy with her previous accountant not informing her of her new requirements so she searched for an accountant who would proactively assist her, as her main focus was to her patients and spending spare time with her young family.
Solution: She met with the team at Snelleman Tom to discuss the primary focus of getting her out of debt. Her team came up with a strategy:
Years 1 & 2:
- Getting cashflow under control: This included negotiating with the bank to obtain cashflow lending, in the form of non real estate secured lending.
Year 3:
- Building wealth through purchasing the company’s premises, buying shares and using negative gearing.
- Protecting the future with income protection and key man insurance for the business
Year 4:
- Purchase of investment properties
As you can see from diagram Angela’s Net Worth has almost quadrupled over the past 4 years.
Angela, now meets regularly with her team and is in control of her finances. She continues to build wealth and has set her and her family up for the future.
